IVA vs debt consolidation

‘Chance for Loans’ is an online debt consolidation and IVA arranger, helping customers in choosing better alternatives according to their financial conditions. Debt consolidationinvolves taking out one loan to pay off many others. It is a strategy sometimes used by consumers to manage their debt crisis in a better way. Rather than paying off different bills each month, a customer consolidates his or her debts with a management company that will arrange for one lower monthly payment extending over a stage of time. It simply means all credit cards, household bills, etc. are combined together. It allows you to reorganize your credit and save funds.

Following are some differences between an IVA and debt consolidation: 

1. The assets studied with an IV are not taken into report with debt consolidation, unless a secured loan is taken out.
2. The time periods for each process are different.
3. Employment status plays an important role in choosing an IVA but in debt consolidation, this status doesn’t matter.

If you are facing debt problems we can help you decide whether an IVA or debt consolidation is the best option. Debt consolidation is carried out by Paying off multiple bills and replacing them with one, easy-to-manage payment.

Some important factors related to both alternatives:

• In an IVA, debtor has to pay at least 75% of debt off, whereas in debt consolidation loan he has to settle all his debts.
• In an IVA it is easier to acquire a credit, whereas with a debt consolidation loan can actually a mortgage in nature.
• In an IVA there is no interest on the debt, on the other hand in debt consolidation, client has to pay interest fees.
• The IVA makes the debtor debt free in just 5 years, whereas in debt consolidation, one has to pay till the end to the full payments.
• In an IVA, property is safe, unlike debt consolidation one has to keep his property as security.
• A debt consolidation loan has less social disgrace than an IVA.
• A debt consolidation loan is more suitable for the credit rating in comparison to an IVA.
• An IVA has to be set up by an insolvency practitioner, whereas a debt consolidation loan can be taken by a loan company.

If you need more assistance on IVA and debt consolidation, you can contact us. We are always ready to help you. So apply today and bid farewell to your queries.